If you walked up to anybody in the streets and told them you started buying airline stocks, they’d likely call 911 and have you placed in a mental institution.
Jokes aside, is there an argument for putting your capital into the airline industry when things appear to be getting worse with each passing day?
Analysts at JPMorgan and Citigroup seem to think so, as they are highly touting companies like Spirit, Ryanair, Azul, and Delta as stocks worth buying. But one thing that’s made clear from both parties is that you are investing into a long-term play which won’t show returns for at least another year.
It’s the classic “buy the dip” situation but with a lot more patience required.
And being the realists they are, Citigroup and JPMorgan are quick to point out that an industry-wide recovery will take much longer than expected:
- Last fall, daily averages for passengers going through security checkpoints were just above 2 million. Right now, we’re barely above 1 million.
- Q1 2021 will have Europe’s largest airline Ryanair operating at 40% capacity of 2019 levels
- On average, cost structures within airlines are being cut by 30-50% to accommodate the lower demand for travel
- Traffic levels won’t recover to pre-2020 levels until 2022, the same year when several airlines expect to finally become cash-positive again
I’m not going to recommend that you start buying up all the available shares, but I also won’t argue against doing so either. This is an investment decision entirely dependent on your appetite for risk and how long you are willing to wait until positive returns come your way.
But for someone who enjoys living life on the edge while patiently waiting on the sidelines for the action to happen, this might be an investment opportunity worth exploring.
What do YOU think – is it time to buy airline stocks right now, or is it better to stay the hell away from them for the next 365 days? Reply to this newsletter with your thoughts and comments!
Would YOU Take a Non-Stop, 19-Hour Flight from Singapore to New York?
As much as I love air travel, even I have my own personal limits on how long I’m willing to spend on a plane without a break. But if you don’t mind spending +12 hours on a plane, this newly-launched flight route might be of great interest to you.
The world’s longest flight is going to embark on its first trip on November 9th, spanning a total of ~9540 miles between the JFK airport in New York and the Changi Airport 9 in Singapore.
Here are some other details you’ll need to know this three-times-a-week route:
- No matter which destination you land in, a 14-day quarantine is mandatory
- The exact flight time is 18 hours and 40 minutes from New York to Singapore, whereas it’s a little shorter at 18 hours and 5 minutes going from Singapore to New York
- So if you leave Singapore at 2:25am, you arrive at 7:30am in New York. And if you leave New York at 10:30pm, you arrive in Singapore at 6:10am (roughly 48 hours after you departed)
- The flight will be operated on an Airbus A350-900: 42 business class seats, 24 premium economy seats, 187 economy seats
But if you’re a smart reader and you know about the ongoing airline restrictions regarding the mandatory use of face masks, you are already second-guessing your decision to embark on this flight right now.
Because short of drinking and eating, you have to wear a face mask for ~18 hours NON-STOP!
The “Postcard Tip” That Makes Any Trip 10x More Memorable
If you’re an old-school traveler who loves keeping souvenirs to recall your travels, make sure you do this one specific thing at your next destination:
Mail yourself a postcard from your destination, writing down some specific details about the 5 W’s (who you were with, what you did, where you were, when you were at said location, and why you were doing it).
The act of physically writing down the details forces you to be intentional about your activities. Instead of scrolling through 100s of photos on your smartphone that you will likely never see or remember again, this memory will be etched into your mind.
Not to mention that they’re inexpensive to buy, cheap to ship to your home country, and make for some seriously awesome souvenirs. It’s a great way to share your experiences with your friends, and possibly a valuable heirloom to share with your children and your grandchildren as you get older.
And the best part? It only takes a few minutes out of your travel schedule. No need to jump fences or break any rules. 😉
What tricks and tips do YOU have for making trips more memorable? Reply to this newsletter and share your best ones with us!
1,500 Anti-Mask Passengers Banned Among 6 Separate Airlines… and Counting!
Wearing a face mask at all stages of air travel – the airport, the check-in, the flight, and walking out of the airport at your destination – is going to become the new normal for nomads and frequent travelers. I may not like it, you may not like it, but it’s here to stay for the foreseeable future.
But some people are just not having it. According to the Wall Street Journal, the current tally shows that 6 separate airlines have banned a total of 1,500 people from flying with them due to disobeying rules around mandatory face mask usage. And they do not appear to be slowing down anytime soon.
Moreover, people are finding ways around this rule. Since you are allowed to take off your mask when eating and drinking… well, let’s just say people are taking as much time as possible with a single bite of food or a sip of their tea.
And how about the individuals who suffer from disabilities and put their health at jeopardy by being forced to wear a mask? Some of them get exceptions, but only with a lengthy medical consult with the airline itself (which isn’t always a guarantee for an exemption).
The only shining ray of light in this story is that the Transportation Department will not allow fines and convictions to be issued for people who refuse to wear masks. Rightfully so, they recognize this new mandate will only work when the minimum number of regulations are put in place.
Plus, we’re talking about an EXTREME minority of non-disabled people who refuse to wear masks. For the most part, 99.9% of people willingly put on the face mask and don’t make a scene about it. So until the pandemic is over, it would be in your interest to do the same…
In the Boeing 767, You Apparently Don’t Need to Wear a Face Mask…
If you’re a billionaire who can easily pay hourly rates spanning 5-figures for a single flight, then you can literally buy the right to avoid wearing a face mask while on a plane.
Let me be more clear: The Boeing Business Jet 767, with fewer than 100 aircraft in use worldwide, has been remodeled into a private jet for the top 0.01% of wealthy individuals. Think billionaires, powerful government officials, and filthy-rich travelers who love burning through money like there’s no tomorrow.
Switzerland-based aviation company Comlux has their own Boeing 767 and they’ve dubbed it the “SkyLady,” seating a total of 51 individuals (far below its actual capacity) and offering a brand-new ionization cleaning system. Supposedly, passengers don’t have to wear a mask because this system is so damn effective at eliminating airborne pathogens.
It also comes with features such as support staff, a “private apartment” area with its own fully decked out living room and master bedroom, showers for each individual passenger… we’re talking about a luxury 5-star hotel experience in a plane!
Not something I’ll ever be able to afford in my lifetime. But seeing as the ultra-wealthy people of this planet will want to start flying again, it’s yet another example of the private aviation industry succeeding while the public aviation industry continues to crumble…
FAKE Negative COVID-19 Test Results Are Already Becoming a Problem!
Walk into airport today and you’ll be asked to present proof a negative COVID-19 test result before you hop onto an airplane. For certain destinations, you’ll need to get that result within 72 hours of your flight for it to be deemed legitimate. And it will cost you anywhere from $75-200 for the test.
But apparently, some people just don’t want to do the damned test. So they’ll already found a way to “fake” the test certificates and walk right through security…
This problem was recently highlighted in a Daily Mail article investigating travelers flying from the UK to Pakistan, and it turns out an online travel agent was behind the entire scheme. It was surprisingly simple too: You talk to a friend who has had a test in recent times, make a copy of their test certificate, doctor your name on it, and hand the fake version over to authorities.
You would pay anywhere from 50-150 pounds for this service, depending on how early you ask for it. And even if you do a test and it comes out positive, the result can be “changed.”
Supposedly, unless you are an essential worker, it is extraordinarily difficult to get a test the legitimate way (i.e. go to a clinic, or travel to a country that requires a certificate… in which case you can get the test done during check-in).
Nobody has been “caught” yet, and details about the rogue travel agent have not been revealed yet. But it does reveal the sad state of affairs the world is in right now when you even THINK about faking a COVID-19 test result (or have to do so). It’s only a matter of this time before the scandal of fake test results becomes a prevalent problem in the USA!